This is the first post in a series of four.

Venezuela, in recent years, has given birth to the first government cryptocurrency, called Petro.

Here, I am not interested in talking about the details of the same. Among other things, many consider this project a pure scam, an extreme attempt by the Venezuelan leader to resist a disastrous economic crisis.

What seems interesting to note is that Petro relies on something of value, that is, the immense oil reserves of the country.

It seems a project in contrast to fiat money, that is legal tender currencies, such as dollar, euro, yien, etc ... which are not covered by reserves of other materials (for example: gold reserves), and therefore are devoid of intrinsic value.

Petro looks like a cryptocurrency based on something real and of high subjective value. Can all this be an advantage for Petro?

The fiat currencies have been released from the gold reserves for a long time, and in fact they work, a reserve of value does not therefore seem necessary to guarantee the value of the same currency.

The trust that users have in it seems in itself a store of value.

Fiat coins have been working for some time, even if their functioning seems far from perfect.

Cyclically, we see a collapse in the value of many currencies, especially in developing countries, which are seeing their value lose due to a lack of confidence. It is true that you can convert one currency into another, sell Turkish lira, to rely on a currency that is considered safer, such as the dollar, but a race of this type risks leaving thousands of people with the match in hand. , and destroy, not only the value of a currency, but also consequently an entire economy.

Therefore, trust does not seem to be sufficient in itself to guarantee the value of a fiat currency.

Can Petro be the answer to this lack of an underlying?

Can oil really give value to money?

See you tomorrow for the second video.

Thanks for watching!